JEVCO Insurance Co. will assume the assets and liabilities of Kingsway General Insurance Co. effective October 1, Kingsway Financial Services Inc. said Wednesday.

Both Kingsway General and JEVCO are subsidiaries of Mississauga, Ont.-based Kingsway.

The company says JEVCO will be Kingsway’s marketing brand in Canada, and all new and renewal business will be written on JEVCO paper as of October 1. Serge Lavoie continues as president and CEO of the combined Canadian company.

“We believe that JEVCO’s 20-year track record of profitability gives us a strong foundation for achieving greater financial stability in our Canadian business portfolio,” says Colin Simpson, Kingsway president & CEO.

“The consolidation of Kingsway’s Canadian business is a key component of our business plan to rebuild Kingsway’s reputation and deliver greater value to our shareholders and business partners.”

It is expected that the consolidation of the Canadian operations will contribute to a reduction in the Kingsway’s operating expenses.

In addition, JEVCO will put even greater focus on the products where it already has proven expertise, namely: non-standard automobile, motorcycles, recreational vehicles, and surety, as well as commercial auto and property.

The consolidation is subject to regulatory approval.

Kingsway focuses on non-standard automobile insurance in North America.

IE